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Shareholders May Not Be So Generous With mobilezone holding ag's (VTX:MOZN) CEO Compensation And Here's Why

Key Insights

  • mobilezone holding ag's Annual General Meeting to take place on 5th of April

  • Salary of CHF600.0k is part of CEO Markus Bernhard's total remuneration

  • The overall pay is 32% above the industry average

  • mobilezone holding ag's total shareholder return over the past three years was 114% while its EPS grew by 6.8% over the past three years

Under the guidance of CEO Markus Bernhard, mobilezone holding ag (VTX:MOZN) has performed reasonably well recently. As shareholders go into the upcoming AGM on 5th of April, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for mobilezone holding ag

Comparing mobilezone holding ag's CEO Compensation With The Industry

According to our data, mobilezone holding ag has a market capitalization of CHF633m, and paid its CEO total annual compensation worth CHF1.6m over the year to December 2022. Notably, that's an increase of 9.7% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at CHF600k.

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On comparing similar companies from the Switzerland Specialty Retail industry with market caps ranging from CHF368m to CHF1.5b, we found that the median CEO total compensation was CHF1.2m. Accordingly, our analysis reveals that mobilezone holding ag pays Markus Bernhard north of the industry median. Furthermore, Markus Bernhard directly owns CHF1.9m worth of shares in the company.

Component

2022

2021

Proportion (2022)

Salary

CHF600k

CHF500k

37%

Other

CHF1.0m

CHF989k

63%

Total Compensation

CHF1.6m

CHF1.5m

100%

On an industry level, roughly 55% of total compensation represents salary and 45% is other remuneration. In mobilezone holding ag's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
ceo-compensation

A Look at mobilezone holding ag's Growth Numbers

mobilezone holding ag's earnings per share (EPS) grew 6.8% per year over the last three years. It achieved revenue growth of 2.2% over the last year.

We'd prefer higher revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has mobilezone holding ag Been A Good Investment?

Most shareholders would probably be pleased with mobilezone holding ag for providing a total return of 114% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 1 warning sign for mobilezone holding ag that investors should look into moving forward.

Important note: mobilezone holding ag is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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